How cargo cities are powering India's $5 trillion dream

For the last twenty years, Indian aviation has been written exclusively in the language of passenger numbers. It was a narrative of booming terminals, the democratisation of flight through low-cost carriers, and the rising Indian middle class taking to the skies for the first time. But while the world watched the check-in counters, a quieter, perhaps more significant revolution began brewing on the tarmac's darker side: the cargo hold.

India is no longer just building airports; it is constructing a new generation of cargo cities. These locations transcend their role as mere transit points for luggage; they are developing into advanced economic centers intended to serve as the foundation of a $5 trillion economy.

India's logistics sector is undergoing a profound and systematic transformation, spearheaded by two government initiatives: the National Logistics Policy (NLP) and the comprehensive PM Gati Shakti National Master Plan. This concerted drive represents a decisive shift, specifically towards developing dedicated freight corridors in the sky, a clear indication of prioritising efficient air logistics alongside ground infrastructure.

The core motivation behind this aggressive strategy is an economic imperative: to dramatically reduce India's exorbitant logistics cost. The national objective is singular and aggressive: to bring this figure down to a global benchmark range of 8-10% by the year 2030. Achieving this reduction is critical for enhancing the competitiveness of Indian goods on the world stage and fueling domestic economic growth.

From reactive to predictive
While Delhi and Mumbai continue to manage the majority of general freight, airports such as Bengaluru (BLR) and Hyderabad (HYD) are establishing specialized market segments that prioritize value over sheer volume, particularly in sectors like pharmaceuticals, perishables, electronics, and e-commerce.

At Kempegowda International Airport (BLR), the strategy has moved beyond simple infrastructure into the realm of data science. Fletcher Samuel, Assistant General Manager of Cargo Business at BLR Airport, describes a fundamental pivot in how cold chains are managed.

"BLR Airport’s cold-chain strategy is evolving from passive temperature control to active condition monitoring," Samuel explains.

In the old world, a pallet of vaccines or strawberries would be kept cold, and stakeholders would hope for the best until it arrived. Today, the infrastructure ensures end-to-end temperature integrity, but the next phase is about package-level visibility.

Utilising IoT-enabled sensors and advanced data platforms, the airport is integrating sensor-driven data, temperature, humidity, and shock, directly into the airport cargo community system (ACS).

This is a game-changer for global exporters. It shifts cold-chain management from a reactive model fixing things after they go wrong to a predictive one. Stakeholders can access real-time condition data, allowing for immediate intervention. For a global pharmaceutical giant or a flower exporter, this translates into greater assurance of product quality at the destination, drastically reduced spoilage claims, and improved end-to-end reliability.

"For BLR Airport," Samuel notes, "it strengthens our role beyond that of a transit hub, positioning us as an active custodian of cargo integrity and a trusted partner in high-value, temperature-sensitive supply chains," added Samuel.

The frictionless gateway
However, technology inside the terminal means little if the cargo gets stuck in traffic outside the gates. BLR Airport’s frictionless cargo strategy addresses this by tightly integrating physical expansion with digital process orchestration.

The expansion of the cargo village and the automated truck management facility (ATMF) acts as a physical extension of the digital ACS. The ATMF has digitised truck scheduling and gate processes, reducing truck turnaround time from a sluggish four hours to a sleek one hour. Today, 78% of trucks are processed within 20 minutes.

For perishables and pharma, where every minute outside controlled conditions degrades quality, this speed is vital. Across the terminals, the ACS platform (branded as CargobyBLR) has been adopted by over 95% of ecosystem partners. It has digitised documentation and smoothed coordination between airlines, handlers, freight forwarders, customs, and transporters.

The data speaks for itself, export-dwell time has dropped to approximately 13 hours, and import-dwell time to around 43 hours, numbers that mark a substantial improvement over national benchmarks. With the new Cargo Village and India’s largest greenfield domestic cargo terminal by Menzies Aviation, physical flow and digital readiness are finally synchronised. Trucks arrive only when terminals are ready, and cargo moves only when paperwork is complete.

The Bureau of Civil Aviation Security (BCAS) has revised guidelines to allow transfer cargo to bypass re-screening at intermediate airports. Following a three-month transition period that concluded in October 2025, the focus has now shifted from policy formulation to on-ground execution.

As of early 2026, major hubs including Delhi, Mumbai, and Bengaluru are in the advanced stages of operationalizing the mandatory transfer cargo security hold areas required to support this seamless movement.

Delhi’s scale and Mumbai’s rebirth
As the primary cargo gateway for North India’s manufacturing belt, Indira Gandhi International Airport (IGIA) continues to lead the sector through a blend of massive scale and operational efficiency.

Spanning 150 acres and connecting to over 150 domestic and international destinations, the airport is a pioneer in compliance, holding India’s first authorized economic operator (AEO) status and IATA e-AWB 360 certification. Its infrastructure includes advanced cold chain facilities with a 150,000 metric tonne capacity.

To further expand this ecosystem, GMR Cargo and Logistics (GCLL) secured a ₹750 crore long-term loan from Axis Bank on November 26. These funds are for developing the cargo city project at the airport. The facility is secured by GMR Airports through a comprehensive structure involving a sponsor support undertaking (SSU) and a pledge/non-disposal undertaking covering 51% of GCLL shares.

Meanwhile, on the west coast, Mumbai is undergoing a massive transformation. The existing airport is maximising capacity, but all eyes are on the horizon. The Navi Mumbai International Airport is being heralded not just as a reliever airstrip for passengers, but as a facility with a cargo-first DNA.

The new airport features automated terminals and, crucially, direct multimodal links to JNPT (the port). This design is intended to facilitate sea-to-air transshipment, a massive, untapped market for India that hubs like Dubai have historically dominated.

Inaugurating the project, the Prime Minister highlighted the impact of this infrastructure, “This new airport will connect Maharashtra's farmers directly with the international supply chain, including supermarkets in Europe and the Middle East. This means that the farmers' freshest produce fruits, flowers, vegetables and the products of our fisherfolk will be able to reach the global market rapidly.”

For the small and micro-scale industries in Maharashtra, this infrastructure promises to slash logistical costs, potentially fostering a new wave of industrial ventures.

If Bengaluru is the brain and Delhi is the brawn, Hyderabad is the medicine cabinet. GMR Hyderabad Air Cargo has carved a global niche with its Pharma Zone, a dedicated temperature-controlled facility designed to handle sensitive vaccines and drugs.

“Hyderabad Cargo is the preferred gateway for pharmaceuticals and vaccine movements in the South Asia region,” says Pradeep Panicker, CEO of GMR Hyderabad International Airport.

The numbers support the claim. Handling over 180,000 metric tonnes of cargo annually, a staggering 72% of Hyderabad’s exports are pharmaceutical products, with half of that volume heading to the demanding markets of the US and Europe.

With Indian pharmaceutical exports valued at US$27.9 billion in FY 2023–24, the stakes are high. GMR has responded by upgrading Cargo Terminal 1 and building Cargo Terminal 2, introducing specific zones for perishables and expanded warehousing. Their use of IoT-enabled monitoring ensures that Hyderabad remains the pivotal node in the global vaccine supply chain.

The e-commerce tailwind and the drone future
The explosion of e-commerce in Tier-2 and Tier-3 cities has forced logistics players to look beyond the metros, fundamentally altering the operating models of airports.

The shift toward high-frequency, small-parcel movements demands a different approach than traditional bulk cargo. In response, BLR Airport developed India’s first integrated Express Cargo Terminal. Designed around velocity and automation, it segregates the high-volume parcel waves, which often peak at night from mainstream cargo. This allows millions of small shipments to move with the same predictability as heavy freight, positioning BLR as a hub for cross-border e-commerce.

Looking even further ahead, the industry is eyeing the skies for different reasons. While still nascent, trials for last-mile drone delivery from airport hubs to remote districts are underway. If successful, this could allow high-value cargo to bypass India's notorious road congestion entirely.

Turbulence on the runway
Despite the optimism and the gleaming new terminals, turbulence remains.

Dwell times, while improving, still lag behind global benchmarks set by efficiency giants like Dubai or Singapore. The complex web of customs clearances often creates bottlenecks that frustrate Just-In-Time manufacturing supply chains.

Furthermore, the Ministry of Civil Aviation is pushing hard for the Unified Logistics Interface Platform (ULIP) integration to ensure customs, airlines, and truckers speak the same digital language, but adoption takes time.

Perhaps the most pressing issue is cost. Aviation Turbine Fuel (ATF) taxes in India remain among the highest in the world, squeezing margins for dedicated freighter operators and making it difficult for Indian carriers to compete on price with international logistics heavyweights.

The Flight path ahead
By 2030, India aims to handle 10 million metric tonnes of air cargo annually, a massive leap from the current 3 million.

To achieve this, the government is betting on Multi-Modal Logistics Parks (MMLPs). Under Gati Shakti, 35 MMLPs are being developed. Nagpur, for instance, is leveraging its central location to act as a pivot point for air-road transfers, physically embodying the concept of a unified logistics network.

As India positions itself as an alternative to China in the global supply chain, its airports are transforming from transit points into the very engines of the economy.